Yesterday, Teva Pharmaceutical Industries announced that it will be acquiring IVAX for about $7.4 billion. In the transaction, IVAX shares will be converted to either $26 in cash or 0.8471 TEVA ADRs.
After the transaction is completed, IVAX shareholders are expected to own about 15% of TEVA on a fully-diluted basis. The boards of directors of both companies have given their approval.
“The combination of our two complementary businesses will allow TEVA to expand and strengthen our global generic and branded businesses with additional products, a deeper pipeline, and a wider presence in new therapeutic areas and growth markets,” he added.
IVAX will bring more business to North American and Europe, and is expected to show strong performance in Latin America. TEVA is expected to generate over $7 billion in sales as it operates in over 50 countries, and employs about 25,000 people.
“We have had longstanding business and personal relationships at TEVA, and have a strong sense of respect for the high ethical standards that have guided their sustained history of increasing shareholder value,” said IVAX Chairman and CEO Dr. Phillip Frost.
“The IVAX transaction significantly supports our long term strategy of profitable growth and global leadership,” said Makov. “We believe that both companies share similar values and cultures, which I am confident will help us to create a smooth transition and ensure considerable synergies. We expect the transaction to become accretive within the first year.”
The transaction is still subject to antitrust notification, clearance from the United States and Europe, and other customary conditions. It also must be approved by shareholders of both companies.
Some management shareholders of IVAX that hold about 19% of the company’s outstanding shares of Common Stock, have agreed to vote their shares in favor of the transaction. The transaction is expected to close later this year or early next year.
Chris is a staff writer for webproworld. Visit webproworld for the latest ebusiness news.